Buy Bitcoin Cash (BCH)
What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) was launched in August 2017 as a result of a hard fork of the Bitcoin (BTC) blockchain.
In November 2018, Bitcoin Cash was split into several branches.
The maximum block size for Bitcoin is 1 Mbit. When there were not too many transactions, such a restriction had almost no effect on anything, but it significantly limited the possibilities of a DDoS attack. With the growing popularity of Bitcoin, the number of transactions increased, but due to the limitation of the maximum block size, not all transactions were “placed” at once, a queue arose periodically.
In May 2017, the situation worsened dramatically. Some users have complained that they have to wait several days for confirmation. To speed up processing, the user can assign an increased commission. But this makes the use of bitcoins quite expensive, especially for small payments - it makes no sense to use them, for example, when making payment transactions in cafes and bars.
Two methods were proposed to solve the problem:
- Bitcoin Unlimited - remove the 1 MB limit. This was advocated by many miners, since increasing the block size would not only eliminate the queue, but also increase the profitability of miners by increasing the total commission per block, even if the transaction fee falls. The developers were mostly against it - they believe that the removal of the limit will lead to an increase in the requirements for the power of equipment, small miners will go out of business, which will lead to the centralization of the system;
- Segregated Witness (SegWit) - store some of the information not in the blockchain, but in separate files outside the block chain. The developers believe that as a result, a lot of space will be freed up, more transactions will fit in the block, and the speed of confirmations will increase. Supporters of Bitcoin Unlimited believe that this is only a temporary and more difficult solution.
As a result, a compromise SegWit2x protocol was developed - to store part of the information outside the blockchain and increase the block size to 2 MB.
On July 20, 2017, 95% of miners voted in favor of the Bitcoin Improvement Proposal (BIP) 91. It proposed the introduction of the new SegWit2x protocol on August 1, 2017, but without an immediate block size increase. Some participants felt that the introduction of BIP 91 without increasing the block size would not solve the problem, but only postpone it, and would serve the interests of those who view bitcoin as an investment, and not as a payment system.
A group of developers led by ex-Facebook engineer Amory Sechet announced the abandonment of SegWit2x, preserving the previous blockchain structure (without storing information outside of it), but increasing the block size to 8 MB. They called their branch Bitcoin Cash. On August 1, 2017, a "forced branch" (hard fork) took place.
Both cryptocurrencies have a common initial history. Block 478558 was the last common block. The next block number 478559 was generated twice in different formats. One of them corresponds to the SegWitx protocol (planned later by SegWit2x), the other is Bitcoin Cash, which actually became the first block of the new cryptocurrency. All subsequent transactions are separated - they fall into different branches of the blockchain, since the programs of each of the branches work with previous block formats, but reject each other's new formats.
Distinctive Features of Bitcoin Cash
Bitcoin Cash is different from most cryptocurrencies and their hard forks. Many development groups tried to make a high-quality fork of the first cryptocurrency, but single projects turned out to be in demand.
The team of the Bitcoin Cash system managed to make a full-fledged community out of 5% of dissidents, in no way inferior to coins from the top 20 in terms of market capitalization. Moreover, adequate decisions and the desire for decentralization brought the cryptocurrency to the top 5 in the overall ranking of digital assets.
In addition, the Bitcoin Cash network implements an algorithm to protect against transaction erasure and double spending. This avoids adding Bitcoin blocks to BCH and vice versa. Also, in Bitcoin Cash, the user separately creates a signature for the hash amount of the transaction, which helps to avoid errors in the irreversible course of the transaction.
How does Bitcoin Cash work?
From the technical side, the BCH algorithms are no different from the similar structure of the Bitcoin system. With the exception of a few innovations in hashing of signatures and protection against duplication of transaction blocks, the cryptocurrency has all the same structure. Perhaps that is why experts consider Bitcoin Cash to be a more thoughtful analogue of BTC. To understand how Bitcoin Cash works.
Bitcoin Cash combines the best: the smartness and reliability of Bitcoin with the speed of more up-to-date block building on a decentralized chain. If the problems of the original BTC are not resolved in the near future, it will be replaced by a more profitable and up-to-date BCH.
Is there Bitcoin Cash mining?
Bitcoin Cash works on the principle of Proof-of-Work. This means that the computing power of real people's computers is used to confirm the transaction. It is spent on calculating the hash sum with the search for all previous information about receiving coins. To keep the system decentralized, the labor of miners is used.
How to buy or sell Bitcoin Cash?
Buying and exchanging BCH is as easy as buying Bitcoin. In order to place the purchased cryptocurrency somewhere, you need to create a wallet with a bitcoin address. The developers did not create their own wallet, but offer to use the Bitcoin Core developments as the main storage system. This is convenient for both investors and miners - you can simultaneously store both the first cryptocurrency and its promising analogue on the same wallet.
If you decide not to spend energy on mining, then you can buy BCH in three different ways:
- buy Bitcoin Cash from individuals on specialized sites;
- buy Bitcoin Cash using popular cryptocurrency exchanges;
- buy BCH on exchanges.
Each method has its own advantages and disadvantages. Most often, buying from hands is not recommended for beginners - scammers can trick you into transferring real money to them, and then they will not transfer BCH to your address.
Each of these methods can be used in UAE. The choice depends only on your preferences and capabilities. Buying Bitcoin Cash in the UAE will not be a problem for you.
By far the most reliable way to buy Bitcoin Cash in the UAE is the third one, i.e. buy BCH through a cryptocurrency exchange. When choosing an exchange, you should give preference to the most popular and reliable companies that are confidently in the top 30. For example, it could be:
Working with reliable exchanges will protect you as much as possible from intruders and scammers.
How to invest in Bitcoin Cash (BCH)?
Investing in cryptocurrencies is very popular right now. Many want to buy Bitcoin Cash primarily for investment. The rapid growth in the value of cryptocurrencies has allowed many investors to receive a good income, hundreds of percent. Therefore, it is not surprising that interest in investing in Bitcoin Cash in the UAE is quite high.
To invest in Bitcoin Cash in the UAE, you need to register on one of the popular exchanges (where you can buy BCH) and choose a reliable cryptocurrency wallet.
Long-term investments in Bitcoin Cash involve long-term storage of coins. In this case, it is worth using the so-called cold wallets, which provide maximum protection for your coins.
The most popular cold (hardware) wallets now are:
These wallets will secure your invest in Bitcoin Cash in the UAE as much as possible.
How to trade Bitcoin Cash (BCH)?
The growing popularity of cryptocurrencies and high volatility have attracted the attention of not only investors, but also short-term traders (speculators). They do not consider invest in Bitcoin Cash, i.e. investing in a coin for a long period. They buy BCH for short-term speculation on price changes.
You can trade Bitcoin Cash both on centralized and decentralized cryptocurrency platforms, and in brokerage companies. In the first case, you can trade both Bitcoin Cash directly and derivatives (futures, options, etc.). In the second case, you can only trade derivatives and CFDs.
For many traders, the second method is more preferable. Over the years, brokerage companies have created the most optimal conditions and infrastructure for high-quality trading. Exchanges that have appeared relatively recently cannot yet provide similar conditions for work.
Brokerage companies can work directly with fiat money, provide high-quality technical support 24/7, have a high-quality and well-thought-out trading platform with a user-friendly interface, and provide a higher level of security. The benefits can be listed for a long time.
The only caveat is that not all brokers yet provide the opportunity to trade a large number of cryptocurrencies. The list of tools is limited. But since Bitcoin Cash is in the top 30 cryptocurrencies, so many companies have included it in the list of tools.
Plus, brokerage companies offer the opportunity to trade on a demo account, which will protect you from losing your own funds during training.
Are investments in Bitcoin Cash safe?
It is impossible to predict the future of Bitcoin Cash in a certain way. Too many factors of successful development depend on humanity, the state of the global financial system. The possibility of hacker attacks or finding a system vulnerability is not ruled out.
Any blockchain-based payment network is always an alternative to modern bank payments. While the benefits of cryptocurrencies are undeniable, so far the society has not moved towards confidential, secure and reliable transactions that cannot be faked or stopped. This is facilitated by both the global financial lobby and the too high threshold for entering a new technology - people do not understand how the blockchain works.
With the development of digital literacy of the population and the obvious failure of the bank transfer system, the popularity of Bitcoin Cash will also grow. The technical inconsistency of modern financial transfers is obvious - people lose money due to hacks or due to internal technical failures. At the same time, cryptocurrency systems have never been hacked from the outside.
Another important question is whether Bitcoin Cash can replace Bitcoin, becoming the number one cryptocurrency. If the Bitcoin Core team does not solve the scalability problem, then soon users will start switching to a better alternative - BCH.